meed-logo

line1 line2 line3
SIGN IN / REGISTER

TotalEnergies and OQ break ground on Marsa LNG project

2 May 2025

France’s TotalEnergies and OQ Exploration & Production (OQEP), a subsidiary of Omani state energy conglomerate OQ Group, have broken ground on the Marsa liquefied natural gas (LNG) bunkering and export terminal project in Oman.

The estimated $1.6bn LNG project is being built in the sultanate’s northern port city of Sohar and will have a production capacity of 1 million tonnes a year (t/y).

TotalEnergies is the majority stakeholder in the Marsa LNG project, holding an 80% interest, with OQ Group, through OQEP, holding the remaining 20% stake.

LNG production from the facility is expected to start in the first quarter of 2028, TotalEnergies and OQ said in a joint statement.

The Marsa LNG project will primarily supply marine fuel to vessels such as container ships, tankers and large cruise ships, and is said to be the first marine LNG bunkering hub in the Middle East.

Last April, TotalEnergies awarded Technip Energies the main contract to execute engineering, procurement and construction (EPC) works on the Marsa LNG project.

US-based Chicago Bridge & Iron (CB&I) won a contract to build the main concrete LNG storage tank, which will have a capacity of 165,000 cubic metres, and to complete the associated piping upgrade. The firm described its contract as being “significant”, a term it uses to denote a value range of $100m-$250m.

In addition to awarding the EPC contracts for the project, TotalEnergies and OQ also achieved the final investment decision on the Marsa LNG project last April. Marsa LNG was formed in December 2021 through a joint-venture agreement between the two companies.

Marsa LNG infrastructure contracts

Along with the groundbreaking ceremony on 1 May, Oman’s Sohar Port & Freezone, where the Marsa LNG terminal is being built, also awarded three contracts covering infrastructure and other services related to the project.

WSP International’s Oman branch was awarded a consultancy services contract, to provide project management, back-office support, design review, site supervision and contract management services, with the contract running from November 2024 to November 2028.

The second contract was signed with the Netherlands-headquartered Boskalis International’s Oman branch for dredging works, involving the removal of approximately 3.8 million cubic metres of material to develop the access channel, berth pocket and turning circle, with completion expected in September.

Sohar Port & Freezone announced the start of dredging works on the Marsa LNG project in March, when Boskalis was contracted for the job.

The third contract was awarded to Six Construct’s Oman branch, covering the construction of the LNG jetty, shore protection and drainage systems, with a duration of 16 months.

MEED also recently reported that Technip Energies, as the main EPC contractor on the Marsa LNG project, had awarded a couple of sub-contracts to local firms.

Sarooj Construction Company won a sub-contract for temporary construction facilities at the Marsa LNG terminal project site. Industrial Technology Services (Intecs) was sub-contracted by Technip Energies to perform civil works and construct utility buildings.

LNG production

The Marsa LNG facility will consist of a single processing train that will draw up to 150,000 cubic feet a day of natural gas feedstock from the Mabrouk Northeast field, located in Oman’s onshore Block 10 concession.

TotalEnergies is part of a consortium that operates the Block 10 hydrocarbons concessions in the sultanate. Oman’s Energy & Minerals Ministry signed a concession agreement in December 2021 with a consortium led by Shell Integrated Gas Oman, the Omani subsidiary of UK-based energy major Shell, to develop and produce natural gas from Block 10.

As part of the concession agreement, Shell operates Block 10, holding a 53.45% working interest, with OQ and Marsa LNG holding 13.36% and 33.19% stakes, respectively.

TotalEnergies is also a 22.5% stakeholder in the Block 11 onshore concession, from which the Marsa LNG project could draw gas feedstock in the future. Shell Development Oman is the majority (67.5%) stakeholder in Block 11, for which the Omani government signed an exploration and production sharing agreement in September 2022.

Solar-powered LNG terminal

The Marsa LNG complex will be completely electrically driven and supplied with solar power. The project will be “one of the lowest GHG [greenhouse gas] emissions intensity LNG plants ever built worldwide”, with a GHG intensity below 3 kilogrammes of carbon dioxide per barrel of oil equivalent, the partners said in a statement.

TotalEnergies said it is in an “advanced stage of discussions” with OQ’s renewable energy branch, OQ Alternative Energy, to jointly develop a portfolio of up to 800MW, including a 300MW solar project that will supply power to the Marsa LNG facility. The two companies will form a joint venture in which OQ Alternative Energy will own 51% stake, with TotalEnergies holding the other 49%.

https://image.digitalinsightresearch.in/uploads/NewsArticle/13803437/main5008.jpg
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Saudi firm signs $5.4bn oil and gas contract in Algeria

    15 October 2025

    Register for MEED’s 14-day trial access 

    Algeria's national oil and gas company Sonatrach and Saudi Arabia-based Midad Energy have signed a hydrocarbons exploration and production sharing agreement related to Algeria’s Illizi South block.

    The agreement is valued at $5.4bn and has a duration of 30 years, with the option to be extended for an additional 10 years, according to a statement by Sonatrach.

    This contract was signed by Sonatrach CEO Rachid Hachichi and the CEO of Midad Energy North Africa, Sheikh Abdelilah Ben Mohamed Ben Abdellah Al-Aiban, at Sonatrach’s headquarters in Algiers.

    The investments for exploration and exploitation of the block, which is located about 100 kilometres south of In Amenas, will be financed entirely by Midad Energy and include $288m allocated for research investments.

    The contract has a research period of seven years and was singed within the framework of Algeria’s Law 19-13 for hydrocarbons, which came into effect in December 2019.

    ALSO READ: Algeria makes provisional award for downstream project

    In a statement, Sonatrach said: “The work programme associated with this contract will be implemented in strict compliance with environmental protection requirements and in accordance with applicable Algerian regulations.

    “This programme also includes the use of the latest technological and digital solutions,” it added.

    Projected production from the Illizi South offshore development by the end of the contractual period is estimated at 993 million barrels of oil equivalent, including 125 billion cubic metres of marketable gas and 204 million barrels of liquid fuels.

    The expected 204 million barrels of liquid fuels includes 103 million barrels of liquefied petroleum gas (LPG) and 101 million barrels of condensates.

    The latest contract signed by Sonatrach and Midad Energy follows on from an agreement protocol concluded between the two companies on 3 March 2024.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14866259/main1744.jpeg
    Wil Crisp
  • Indian company wins gas project contract in Kuwait

    15 October 2025

    Register for MEED’s 14-day trial access 

    State-owned upstream operator Kuwait Oil Company (KOC) has awarded a contract for its planned project to develop a gas sweetening and recovery facility in West Kuwait to Indian contractor Megha Engineering & Infrastructure (MEIL).

    Hyderabad-based MEIL submitted the lowest bid for the tender, at KD69.2m ($225.5m), in February this year.

    The full list of prices that were submitted was:

    • L1 – MEIL (India): KD69.2m
    • L2 – Al-Khorayef (Saudi Arabia): KD74.5m
    • L3 – Mechanical Engineering & Contracting Company (Kuwait): KD94.8m
    • L4 – China Oil HBP Science & Technology Corporation (China): KD97.9m
    • L5 – Spetco (Kuwait): KD99.5m
    • L6 – Jereh Oil & Gas Corporation (China): KD102.8m

    The project uses the build-operate-transfer contract model and has been split into two parts. KOC has informed contractors that the two stages will be performed independently.

    The project execution stage will cover:

    • Licensing
    • Design
    • Engineering
    • Health, safety and environment services
    • Project management
    • Supply
    • Shipment
    • Procurement
    • Construction
    • Testing
    • Mechanical completion
    • Pre-commissioning
    • Commissioning
    • Stabilisation
    • Performance testing of the facility

    The operation and maintenance stage will cover:

    • Operation and maintenance of the facility
    • Performance of all associated safety, quality control and environmental protection services
    • All other inherent and related obligations

    In November 2024, KOC's parent entity, Kuwait Petroleum Corpration (KPC), confirmed that it plans to spend $410bn on its long-term energy strategy.

    Bader Ebrahim Al-Attar, KPC’s managing director of planning and finance, said the company plans to spend the money until 2050.

    The strategy involves raising KPC’s overall oil production capacity to 4 million barrels a day by 2035.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14866258/main0806.jpg
    Wil Crisp
  • Firms submit interest for Saudi high-speed rail

    15 October 2025

    Register for MEED’s 14-day trial access 

    Firms expressed interest on 12 October in the Qiddiya high-speed rail project, which will connect King Salman International airport and King Abdullah Financial District (KAFD) in Riyadh with Qiddiya City.

    Saudi Arabia's Royal Commission for Riyadh City, in collaboration with Qiddiya Investment Company and the National Centre for Privatisation & PPP, issued the expression of interest notice to the market in September.

    Also known as Q-Express, the railway line will travel at speeds of up to 250 kilometres an hour, reaching Qiddiya in 30 minutes.

    The project was previously planned to be developed under a conventional model, but will now progress under a public-private partnership (PPP) model.

    The line is expected to be developed in two phases. The first phase will connect Qiddiya with KAFD and King Khalid International airport.

    The second phase will start from a development known as the North Pole – which is understood to include the Public Investment Fund’s proposed 2-kilometre-tall tower – and travel to the New Murabba development, King Salman Park, central Riyadh and Industrial City in the south of Riyadh. 

    In November 2023, MEED reported that French consultant Egis had been appointed as the technical adviser for the project.

    UK-based consultancy Ernst & Young is acting as the transaction adviser on the project. Latham & Watkins is the legal adviser.

    Qiddiya is one of Saudi Arabia’s five official gigaprojects and covers a total area of 376 square kilometres (sq km), with 223 sq km of developed land. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14867663/main.png
    Yasir Iqbal
  • Qatar’s Ashghal awards $305m road contracts

    15 October 2025

    Register for MEED’s 14-day trial access 

    Qatar’s Public Works Authority (Ashghal) has awarded two contracts worth over QR1.1bn ($305m) for the construction of roads and infrastructure networks in the Izghawa and Al-Themaid areas in the northwest of Doha.

    The contract for the first package, valued at over QR688m ($190m), was awarded to local firm Al-Mohannadi for Roads & Trading & Contracting.

    The contract for the second package was awarded to another local firm, Attikat. The value of the contract is QR418.4m ($115m).

    This project involves the construction of a single- and dual-carriageway road network in the area. 

    The scope includes the construction of carriageways, footpaths, parking areas, kerb lines, traffic signs and road markings, pedestrian guard rails, fencing, traffic signals, street lighting, landscaping and irrigation systems.

    The scope also involves surface/groundwater drainage systems, foul water drainage systems, treated sewage effluent irrigation, potable water network systems, electricity networks, a telecommunications infrastructure network and other associated facilities.

    The construction period is three years.

    The proposed development includes a residential area comprising over 1,262 housing plots, 133 utility plots, 32 government plots, 28 open spaces, four commercial centres, nine mosques, two transportation and four education facilities.

    In June 2022, Qatar’s Transport Ministry unveiled the Transportation Master Plan for Qatar 2050. The plan supports 286 projects, including 86 highway schemes, 22 for goods transport, 54 public transport schemes, 21 for pedestrians, 29 cycling schemes and 74 cross-modal and integration projects.

    The future highway schemes entail 37 infrastructure packages totalling 770 kilometres (km), 22 truck schemes and 10 infrastructure and facilities schemes. The public transport programme comprises 30 schemes for upgrading the main 540km public transport network.

    The masterplan also includes long-distance, metro and regional rail network plans.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14867823/main.jpg
    Yasir Iqbal
  • L&T announces UAE grid substation award

    14 October 2025

    Indian industrial contracting conglomerate Larsen & Toubro (L&T) has announced several new grid infrastructure orders, including the engineering, procurement and construction of a 400kV substation in the UAE.

    The facility, awarded to L&T's Power Transmission & Distribution business, forms part of the planned 400kV interconnection between Oman and the GCC grid.

    The interconnection will enable a direct 400kV link between Ibri in Oman and Al-Sila in the UAE. It involves around 528 kilometres of overhead transmission lines, expansion of the existing Al-Sila substation and the development of two new 400kV substations, one in each country.

    MEED understands the substation to be built by L&T is a planned 400kV intermediate substation near Madinat Zayed in the UAE.

    L&T also said it has secured an order for the construction of a series of 132kV substations in the Middle East to cater to rising power demand. No other details were given and it is unclear where these substations will be located.

    In Saudi Arabia, the company has received a contract for the construction of 380kV overhead transmission lines associated with the integration of renewable energy power plants.

    It is understood that these contracts are for Saudi Electricity Company's Al-Khurma 1 and Al-Khurma 2 projects in Mecca, for which L&T submitted the lowest bids earlier this year.

    ALSO READ: L&T announces QatarEnergy NGL train project award
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14863247/main4046.jpg
    Mark Dowdall